FX.co ★ OECD Raises India’s 2025 GDP Forecast to 6.7%

The Organisation for Economic Cooperation and Development (OECD) announced on Tuesday an upward revision of India's GDP growth forecast for 2025 to 6.7%, an increase from its previous estimate of 6.3% set in June. This adjustment is attributed to robust domestic demand and significant reforms in the Goods and Services Tax (GST) system. The agency observed that while higher tariff rates might impact the export sector, economic activity overall is likely to be bolstered by easing monetary and fiscal policies, alongside the GST reforms. Simultaneously, S&P Global Ratings, in its latest analysis, suggested that India’s economy will maintain a stable growth rate of 6.5% in the fiscal year 2025–26, positioning it as the fastest growing economy in the Asia-Pacific region. This growth is primarily underpinned by strong domestic demand and ongoing government investments. Additionally, Finance Minister Nirmala Sitharaman recently expressed optimism that GDP growth in FY25–26 could surpass the projected range of 6.3%–6.8%, driven by increased consumption following recent GST tariff reductions and a strong performance in the first quarter.